Singapore and Iran inked  a bilateral investment agreement. (Photo: straitstimes)

Singapore (VNA) – Singapore and Iran have inked a bilateral investment agreement, marking a new milestone in the two countries’ relations.

Singapore is the first Southeast Asian nation to sign an investment treaty with Iran following the Middle East country’s reintegration into the global economy after years of international economic sanctions.

The treaty was inked during the two-day visit of Singapore’s Minister for Trade and Industry S. Iswaran to Teheran, Iran who was accompanied by representatives from the Singapore Business Federation.

The agreement will grant Singaporean investors common protection, including the right to fair and equitable treatment, most-favoured-nation treatment, protection against expropriation and a guarantee of free capital transfer.

Trade between Singapore and Iran totalled 6.6 billion USD in 2011 before sanctions were imposed. The bilateral trade, however, fell to 2.6 billion USD in 2012 before hitting a record low of 171 million USD last year.-VNA